Odd Lots This Is How Prejudice Can Hinder the Economy
Dec 31, 2020
Paul Donovan, UBS Global Chief Economist and author of "Profit and Prejudice," dives into the detrimental role of prejudice in labor markets. He explains how discrimination cripples economic growth and productivity, drawing historical parallels to technological advancements that have spurred societal blame. Highlighting the importance of diversity initiatives, Donovan argues that reducing prejudice can unlock human potential and enhance economic well-being. He urges a rethinking of traditional economic metrics to prioritize real-world outcomes and promote equality.
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Prejudice vs. Profit
- Prejudice harms profits and economic well-being.
- It prevents the right person from being in the right job, hindering efficient resource allocation.
Revolution and Prejudice
- The Fourth Industrial Revolution, characterized by AI and automation, makes efficient resource allocation crucial.
- However, this period's uncertainty and change can increase prejudice.
Historical Prejudice
- Past industrial revolutions saw increased prejudice: Luddites targeted Catholics and Methodists, while later, women were blamed for job losses.
- This 'scapegoat economics' arises from the inability to understand complex societal shifts.
